How Much Proof is Needed for Tax Fraud?

[givadamsbusted]

Hi! I am considering reporting my ex boyfriend for tax fraud. He and his cousin have a "business" buying medical equipment and reselling it. They each make approximately $12,000-15,000 a year doing this, and do not claim it as income. Is it enough $ for the IRS to even care? There are no records of this business other than checks written out of and deposited into his bank accounts. Would that be enough proof? Any knowledge would be appreciated.

[irsfixer]

Hi! I am considering reporting my ex boyfriend for tax fraud. He and his cousin have a "business" buying medical equipment and reselling it. They each make approximately $12,000-15,000 a year doing this, and do not claim it as income. Is it enough $ for the IRS to even care? There are no records of this business other than checks written out of and deposited into his bank accounts. Would that be enough proof? Any knowledge would be appreciated.

I am certain that the vast majority of people reading this post do not approve of tax evasion and hope that the boyfriend gets what is coming to him, if anything. But I also think there is an element of revulsion at the new-found civic responsibility of the poster. One has to wonder if she had guilt pangs as she helped spend the proceeds of the business while the relationship was still ongoing. She seems to know a lot of details and I get the feeling she knew the details while she shared his bed.

That said, the IRS typically will not make a criminal tax fraud claim unless there are three years of non-compliance. If they were dumb enough to use a bank account then those records can certainly be used to make the case.

[givadamsbusted]

Thanks for the response. The relationship was short and not so sweet. He also "borrowed" thousands of dollars from me which he never paid back. I was not aware that his "business" was illegitimate until shortly before I ended the relationship. But I appreciate your opinion.